By the beginning of the year 2020, there were around 30 lakh retail investors in the equities market in India. It is not a large number for a country with 140 crore people. But during the two years of the pandemic, this number almost tripled. The number of online traders is increasing with each passing year.
If you plan to start online trading, you must follow a few specific steps. Here’s how you can start trading online and building a portfolio.
Select your broker – To invest in stocks, mutual funds, exchange-traded funds, government securities, etc. you must have a demat account. And demat accounts can be opened only through a stockbroker.
While selecting a stockbroker, the first thing to ensure is that the broker is enrolled with SEBI. The trading platform provided by the broker must be easy to use. You can check the customer reviews of these platforms to shortlist the best ones. The customer service, tools and analytics provided, transaction costs, and annual fees of the platform are the factors that must be considered while selecting the broker.
Open your demat and trading account – The next step is to open a demat and trading account with your broker. If you are opening one with Motilal Oswal, you have to –
With this, your demat and trading account becomes functional.
Once your demat and trading account is up and running, you should log in to the account and familiarise yourself with the platform. You can check tutorials and guidance notes to understand and use them better.
To start trading, you have to add funds to your account. You must select the bank account linked with the account and choose the mode of fund transfer.
Now that you have money in your trading account, you have to select stocks and trade them. But the truth is, with more than 2,000 companies listed on the National Stock Exchange, choosing the right stock can be quite a task.
As a trader, you must keep the following factors in mind:
For online trading, having a demat and trading account on a platform that is user-friendly, simple, and affordable is very important. Your broker must be SEBI-enrolled, with a reputation and track record in the field of stock brokerage services. Once you have your demat and trading account in place, the success of your online trading will depend on your acumen and understanding of the market. As you continue to trade, your trading experience will make you better in your trading decisions.
Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account